Originally published in The Legal Intelligencer
Smart Strategy
Several years ago, Lisa Bodell, a professor at Wharton, published her book, “Kill the Company.” In it, she describes an exercise by the same name. The premise was simple: a team of leaders is instructed to deploy the same level of competitiveness, aggressiveness and tenacity they would typically reserve to dismantle their competitors on their own company. The result: a laundry list of vulnerabilities—weak spots that threaten the long-term viability of the company or its ability to thrive, expand and prosper—and an opportunity—to right the ship and fortify the company’s position.
In much the same way, the pandemic presents law firms an opportunity to hit the reset button. The past year laid bare false truths (e.g., lawyers have to work from their office; legal assistants are compulsory) and opened the door for significant change in a short period of time. Lawyers, clients and professionals discovered new and effective ways to work together, shedding seemingly unnegotiable facades (pants, anyone?) to connect in more personal, authentic ways. Yet, as firms reopen their doors and people return to the office will they, too, re-adopt bad habits alongside the good ones?
Possibly. The key to avoiding this scenario: Intention. With intention, firms can avoid falling into old habits. With intention, firms can sustain the positive outcomes they have achieved beyond COVID. And with intention, firms can continue to make improvements for the betterment of all.
Ditching Chance and Happenstance
For far too long, firms have relied on in-person interactions to guide firm culture, career development and client engagement with little, if any, formal process, rules or consistency. This approach yields, unsurprisingly, a wildly variable experience. Some clients receive white-glove treatment and are showered with attention. Others shop elsewhere to find responsive, business-savvy advice. Within the firm, certain associates win the lottery, working with collaborative, engaged partners who take pride in developing those around them. Others work diligently and largely unnoticed. And more withstand the wrath of rainmakers lacking in empathy or people skills, withering until they’ve had quite enough, thank you.
These interactions lack intention —there is rarely a guiding principle or philosophy helping to establish a model for the most effective and fruitful ways to engage. Furthermore, this approach exacerbates the inequalities inherent in broader culture, in society as a whole. Psychological tendencies which lead people, for example, to seek out like-minded individuals simply serve to perpetuate inequities and squelch diversity.
The pandemic affords firms an opportunity to change the status quo. For the next six months, people are more open to change. They will respond more readily, and willingly, to new ideas, new ways of operating and new ways of engaging with each other. Determined law firms will leverage this brief opportunity to cement the good and kill the bad.
Below is an exercise adapted from Bodell’s Kill the Culture model, with added flavor from her colleague, Adam Grant. Each and every law firm can use this approach to explore, thoughtfully, what new behaviors the firm would like to encourage, what bad behaviors they’d like to leave behind and where to focus immediate efforts on positive change as we return to the office, together, differently.
What Do We Kill (Don’t Bring Back)
Facetime (for the sake of facetime)—for as long as there have been professions, there have been professionals who value someone’s physical presence above all else (I’m looking at you Mr. Scrooge). In-person interactions do have a time and place. They can enhance social connections and afford the opportunity for casual “collisions” which help to cement cultures and enhance belonging. The pendulum, though, often shifts far too close to one end of the spectrum, when managers, leaders, partners and even peers scrutinize others’ facetime for clues into their performance, dedication or work ethic. The antidote: better performance management, enhanced communications and leader development.
Busywork—a close cousin to facetime, busywork is work created almost exclusively for the purpose of making one’s self or someone else appear busy. It is typically thoughtless, often unnecessary and quashes any modicum of creativity, efficacy and process improvement.
Tech aversion—lawyers may not love it, but tech is here to stay. Many (though definitely not all) did, indeed, learn new tricks over the past 14 months. Attitudes toward technology, its value and its time-savings capabilities have decidedly improved. Maintaining an openness to adopting new tools, within reason, will help firms vault into the 21st.
Poor financial hygiene—law firms made an impressive 180 with respect to their timekeeping and collections habits in 2020. Seeing the direct correlation between money in the door and firm performance—and profitability—is unlikely to be enough to maintain diligence. Already, CFOs and COOs are lamenting the slippage. It’s simple math—cash flow matters.
The lone wolf syndrome (unbridled autonomy)—the past year, in multiple ways, was a stark reminder of our interconnectedness to one another as humans, a demonstration of how one person’s actions can impact another’s wellbeing. Tim Corcoran of Corcoran Consulting Group offers extensive thoughts on how autonomy, unbridled, breaks down law firms’ ability to improve, evolve and grow.
BS—it has been a beautiful, peaceful year without the constant refrain of moaning and groaning, berating and attacking, frustration and gossiping. As people shifted to a mindset of fortitude and resilience, digging deep into reserves for ways to simply get through the day, the seemingly trivial and inconsequential bothers that plagued pre-pandemic days seemed to melt away. Put succinctly: we don’t have time for that sh*t anymore.
What Do We Keep (New Practices/Mindsets)
Humanity (personal lives matter)—Zoom calls in living rooms and kitchens, pets on the keyboard and family members in the background—the backdrop for daily work life over the past year changed dramatically. Often for the first time, lawyers were afforded a glimpse into the inner workings of their clients’ and colleagues’ lives. Barriers disintegrated and personal lives became intertwined with daily work. Yes, there are downsides to this model. Boundaries are important and some separation will go a long way to restoring mental health. The humanity aspect, though, the recognition and acknowledgement each of us is part of a bigger whole—let’s hold onto that.
Grace (flexibility, compassion, understanding)—forced to contend with a world in crisis and turmoil, many took stock of what truly matters in life—and it showed. The adage, “you don’t know what that person is going through” took on new meaning, and grace emerged. Not in everyone; but in enough people the shift was palpable. Continuing to cultivate compassion and flexibility will take effort—intention, if you will—yet it is worth every bit of exertion.
Willingness to change—change was thrust upon law firms and, lo and behold, not only did they survive, they thrived. Keeping an open mind to new and different ways of doing business will help firms stay one step ahead and continue to evolve and grow long after returning to the office.
Profitability—the vast majority of AmLaw 200 firms had banner years with respect to profitability in 2020. While a reduction in expenses such as travel, events and health care helped to fuel that spike, there were other more sustainable changes as well. Some firms accelerated long overdue structural changes, reorganizing for increased efficiency. Others adopted client-friendly fee arrangements and enhanced flexibility to meet client needs. And still others simply doubled-down on making sure they were in front of changing market demands. New ways of operating, using technology and catering to clients can continue to bear fruit, long after the pandemic is in the rearview mirror.
Client-orientation—though not universal, I would be remiss to not laud the firms that were able to elevate their interactions with clients over the past year-plus. While some lawyers buckled under the pressure, others ramped up outreach, checking on clients personally and professionally simply because. That mattered to clients, and it showed in the way many firms performed. As the world returns to some semblance of normal, firms would be wise to not lose sight of the value of these vital relationships.
What We Still Need to Work On
The caste system—to maintain peace with sometimes highly vocal proponents of flexibility and remote work among the partner ranks, leaders are contemplating whether to impose different policies for partners, associates and staff (i.e., more flexibility for lawyers than staff). Don’t do it. Just as law firms must continue to advance their thinking with respect to business professionals as assets, they must also recognize this move threatens the firm’s culture, growth and long-term sustainability. Inclusive cultures do not consist of lawyers and non-lawyers. Seek input, explore alternatives, and make it work.
Flexible work—there are more questions than answers in this realm, and law firms have a ways to go. Two pieces of guidance: follow the clients’ lead—take note and gather insight from clients on how they plan to offer flexibility and what kind of relationship they would like to have with the firm moving forward; make it institutional. Research shows institutionally imposed guidelines and downtime (e.g., Dentons “meeting-free” weeks) eliminate the psychological burden of feeling as if one is missing out or not keeping up. Consider organizational schedules with built-in flexibility and imposed “on”—and “off”—time (e.g., this team spends Monday, Wednesday in the office and Thursday meeting-free).
Accountability—the business owner mentality is lacking in many law firm partnerships and continues to threaten the viability of law firms of all sizes. Law firms leaned heavily on their leaders throughout COVID, with not even a majority asking partners to bear some of the burden. Leaders are burnt out, and more partners—aka owners—need to step up to make the business work. There is no more room for exception-based cultures or “special snowflakes.” Moreover, there is less room than ever for partners who are not holding their own. Focus on defining what it means to be a partner in the firm (hint: it has changed dramatically in the past two years), then clean house and be stringent in promotions.
Leader development—on whole, law firm leaders get virtually no formal training or coaching before taking on positions of leadership—and it is taking a toll. Even the most well-equipped, effective leaders tapped into reserves they didn’t know they had during the pandemic. For those struggling daily to learn on the job, address daily shifts and a whole lot of uncertainty, leader development is essential, not a nice-to-have. Start now to ensure current and next-gen leaders have the tools and skillsets they need to herald firms forward.
Inclusive culture—enough can not be said about the divisiveness and inequity laid bare in the United States and globally by events of the past 14 months. Whether socioeconomic, gender-based, racial, by sexual orientation or otherwise, the means to alleviate the impact of these differences is well within the purview of law firms. Quotas and training alone are not going to cut it. Firms must delve deep, digging into the very essence of their culture and practices to illuminate real barriers to diversity, equity and inclusion. That parental leave policy that differs for men and women. The expression “mommy track.” Oodles of firm dollars dedicated to sporting events and golf outings. The division of labor that places administrative burden on women or, worse, places a person of color on three times as many matters in less substantive ways to attain a well-intentioned, poorly executed metric of representation. Start by building safety. Read the Culture Code. Educate the leaders. Keep progressing.
This is by no means an exhaustive list of what needs to go, stay and improve as the industry moves back to an office environment and some semblance of “normal.” Engage in a similar discussion within your firm—bring together a cross-disciplinary group of lawyers and professionals and hire an external person to facilitate and lead a discussion. Heck, ask them to kill the company. Then, be prepared to act on what you learn. With intention—and no BS.